SBA Sets Loan Rate at 4.63% – Yawn-Worthy Update
Published Date: 7/29/2025
Notice
Summary
The Small Business Administration set the Optional Peg Rate at 4.63% for July through September 2025, which helps decide interest rates on certain SBA loans. This affects small businesses using SBA-backed loans, especially those with fluctuating rates or 504 projects. If you’re borrowing through a Third Party Lender, your max interest rate can’t go over 6% above the New York Prime rate or your state’s legal limit.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Optional Peg Rate set at 4.63%
The Small Business Administration set the Optional Peg Rate at 4.63% for the July 1, 2025 through September 30, 2025 quarter. This rate may be used as the base rate for guaranteed fluctuating interest-rate SBA loans, which can affect the interest your SBA variable-rate loan charges.
Cap on Third Party Lender Rates for 504 Projects
For any Third Party Lender commercial loan that funds any portion of a 504 project, the maximum legal interest rate is 6% over the New York Prime rate, or the lower maximum interest rate allowed by a State's constitution or laws. This cap applies pursuant to 13 CFR 120.921(b).
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